A company reports the following:Net income $410,000Preferred dividends $60,000Shares of common stock outstanding 50,000Market price per share of common stock $84a. Determine the company’s earnings per share on common stock.b. Determine the company’s price-earnings ratio. Round to one decimal place.
A company reports the following:Net income $410,000Preferred dividends $60,000Shares of common stock outstanding 50,000Market price per share of common stock $84a. Determine the company’s earnings per share on common stock.b. Determine the company’s price-earnings ratio. Round to one decimal place.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 11BE
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A company reports the following:
Net income $410,000
Preferred dividends $60,000
Shares of common stock outstanding 50,000
Market price per share of common stock $84
a. Determine the company’s earnings per share on common stock.
b. Determine the company’s price-earnings ratio. Round to one decimal place.
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